How much can the bank lend me on my salary in New Zealand?

Short answer: Usually 6–7 times your yearly income. On $100,000, that is roughly $600,000–$700,000.

What this actually means in plain English

The bank looks at how much you earn and how much you already owe. In New Zealand, they usually let you borrow up to 6–7 times your yearly income. If you earn $100,000 a year, the bank might lend you $600,000–$700,000. But they also check if you can afford the weekly repayments after paying your bills.

Key Facts

Banks in New Zealand typically cap lending at 6× income for owner-occupiers and 7× for investors
This is called the debt-to-income ratio (DTI)
The bank also checks your "serviceability" — whether you can afford repayments after bills
They use a pretend interest rate (usually 8.5%) to make sure you can cope if rates rise
Your existing debts (car loans, credit cards, student loans) reduce how much you can borrow
Banks prefer stable income — full-time employment is easier to assess than casual or self-employed

Example

Setup: Tom earns $90,000 a year. He has a $15,000 car loan.

Gross: The bank might lend up to $540,000 (6 × $90,000).

Debt: His car loan reduces this. The bank subtracts existing debt.

Serviceability: At 8.5% interest, repayments on $500,000 are about $950/week.

Income After Tax: Tom takes home about $1,250/week after tax.

Bills: He pays $300/week in rent, $200 in other bills.

Leftover: That leaves $750. The bank wants $200–$300 buffer.

Result: The bank approves $500,000. Tom looks at houses under $550,000.

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